Daily Archives: February 23, 2009

Kate Mackenzie

Rachel Ziemba at RGE Monitor looks at China’s recent resources buying spree. The first part covers what is already generally known: indebted companies need the cash and it signifies an increase in government involvement in energy deals.

About halfway along, she looks at suggestions that China’s recent resources spree indicates a shift away from deals to invest in projects to getting the finished product – and how this coincides with less focus on Africa. Read more

Ed Crooks

In its latest Monthly Oil Market Report, the Centre for Global Energy Studies points out that while oil demand has fallen fast in recent months, Opec supply has fallen even faster. That explains why the crude price has stabilised at about $40 per barrel.  Read more

Ed Crooks

Nuon, the other big Dutch utility remaining independent after Essent fell to RWE of Germany, has now accepted an offer from Vattenfall of Sweden, which is also big in Germany. Read more

Ed Crooks

Seadrill

West Aquarius – Source: Seadrill

Seadrill, one of the world’s biggest offshore drilling rig contractors, has warned of charges of $810m to its fourth quarter results for various reasons, with the biggest item a $615m charge for falls in the value of its “strategic investments” in three other companies: Pride International Inc, Scorpion Offshore Limited and SapuraCrest Bhd. Read more

Carola Hoyos

On Energy Source today:

A turning point for US-China relations on emissions? Read more

Kate Mackenzie

Energy was the main topic of US Secretary of State’s meeting on Saturday with China’s President Hu Jintao. The China Environmental Law blog focuses on parts of the dialogue that seemed to indicate the US was countering “the standard argument of China and other annex 1 countries – that “developing” countries should be permitted to emit carbon with impunity” because the developed world did so.

The main theme: China, which last year overtook the US in carbon emission levels in large part due to its coal-fired power plants, cannot be let off the hook just because developed countries were once free to pollute in ignorance. Read more

Kate Mackenzie

When the weather warms up in the US after this colder than usual winter, Tom Kloza wonders if it will it reveal a ‘scary skinny’ anorexic demand for oil? Though prices surged from new year’s day to President’s Day, last week they again began to fall – and it’s not even March. His analogy works like this:

Think about it this way.If you run into Lindsay Lohan in the depth of winter on the streets of New York, you are likely to see her clothed in heavy garments – – fashionable, of course – and think that nothing is amiss. Similarly, the Olsen Twins might be clad in an assortment of heavy coats, scarves, and layers when they venture into the city to check on the tens of millions of dollars they made on the backs of Moms and Dads paying for G-rated videos that could keep their toddlers off the streets. (I am a bitter parent). Read more

Kate Mackenzie

European energy commissioner Andris Piebalgs went to see Brazil’s biofuels in action to for himself and is rhapsodic about what he discovered.

The vast majority of cars sold in Brazil in recent years are ‘flex fuel vehicles’ (FFVs) – they can switch between ethanol or gasoline. About 7m flex cars are on the road today. Read more

Energy news from the FT:

- Lex: Enel and Endesa
The deal serves both sides well Read more

Energy news headlines from elsewhere:

- Diesel to dip below gas as Valero output rises (BloombergRead more